Dáil debates
Thursday, 23 May 2024
Ceisteanna ar Sonraíodh Uain Dóibh - Priority Questions
Business Supports
11:00 am
Peter Burke (Longford-Westmeath, Fine Gael) | Oireachtas source
I thank Deputy Smith for his kind wishes. I propose to take questions Nos 54, 58 and 63 together. The Government is very aware that SMEs have faced a number of economic shocks in recent years which have resulted in cost increases. On 15 May, I, along with my Government colleagues, announced a substantial range of measures to reduce costs for small and medium sized businesses. Included in these measures was the reopening of the increased cost of business, ICOB, portal from 15 May to 29 May in order to allow rate-paying business owners who have not registered to do so.
We have also received feedback that the process of registering is simple and quick. As part of the reopening of the ICOB scheme and given the greater impact the increased costs are having on the hospitality and retail sector, as Deputy Brendan Smith has quite rightly pointed out, there was an impact assessment report by my Department and the Department of Social Protection. The Government has agreed that businesses that operate in these sectors will receive a second payment from approved businesses or a double payment for new registrations under the scheme.
The up-to-date figures the Deputy requested, as at 3 p.m. on 22 May, are as follows. In Cavan, 1,118 were registered before 1 May and there were 12 additional registrations in the past week. In Monaghan, 1,198 were registered before 1 May and eight were registered since the scheme reopened. I call on everyone to push those figures up because this money is here to support them. In Donegal, 2,300 registered before 1 May and 67 were registered since the scheme reopened. In Leitrim, 468 were registered before 1 May, with three registered since the scheme reopened. In Sligo, 997 were registered before 1 May and three since the scheme reopened. In Roscommon, 952 were registered and 21 since it reopened. In Galway city, 1,878 registered before 1 May and 23 since the scheme reopened. In Galway county, 1,832 were registered before 1 May and 36 since the scheme reopened. In Mayo, 2,456 registered before 1 May and 42 since the scheme reopened. In Tipperary, 2,361 registered before 1 May and 35 since the scheme reopened. In Limerick, 2,727 were registered before 1 May and 82 since the scheme reopened. In Clare, 1,837 were registered before 1 May and 44 since the scheme reopened. In Longford, 753 were registered before 1 May and 14 since the scheme reopened. In Westmeath, 1,367 were registered before 1 May and 60 since the scheme reopened. In Laois, 909 were registered before 1 May and eight since it reopened. In Offaly, 949 were registered before 1 May and 21 since it reopened.
I call on everyone to work together to highlight the importance of the scheme. It is there and it is simple to use. I point out that there is a double payment for vulnerable sectors, such as the hospitality sector, as Deputy Smith referenced, and also the retail sector. I also call on all the local authorities to get this money paid, which is important. There is a huge disparity within the local authority network in respect of payments. Some of the local authorities are well over 70% or 80% in approvals for payments. We are at approximately 63% or 64% that have registered and we will try to increase that percentage in the two weeks. A very strong advertising campaign is now under way that is trying to penetrate down to local businesses and local shops, because this grant is really substantial and will help them. Many of them will get an average payment of €3,000 or €4,000 under each round. This could mean €6,000 or €7,000 for some businesses, which will help them with cash flow.
I point out that this is part of the wider package. We need to be sustainable. It is important that we have the capital grant funding in place to help them with their energy efficiency grants and trying to transform their methodology by upgrading LED lighting or refrigeration. This can help with their bills by €1,000 per month. There is also the PRSI change, which will take effect from 1 October. It is important that we keep our economy competitive and make it as easy as possible for employers to employ in a growing market that is very competitive. Members will have heard the Minister of State, Deputy Higgins, speaking about how we are trying to respond to many challenges in the permit system.
The bottom line is that registration is open. It can be done in two minutes. You can do it on your mobile phone. You are only asked to populate the letter received from the local authority, which will include a personal identification number. You are asked to put in your tax clearance certificate details and press send. That will ensure that the local authority is able to give authorisation and the payments will follow right into the bank account of the business. That is very important to ensure that we are listening to businesses. I have met with representatives of a number of business sectors, such as the Restaurants Association of Ireland, IBEC and the Irish Small and Medium Enterprises Association, ISME. Many of the representatives are trying to get the message out to businesses that this is here to support them and it is important that they draw it down.
We have €250 million in place. As we go forward to the next budget, it is important for that money to be utilised by our SME sector. If it is not used, that will weaken my hand going into budget negotiations this year. It is very easy to say that €250 million was available but was not drawn down. I appeal to people to get the message out that this money is there for businesses and it should be used. It is there to help them. I am doing everything I can, working with Deputies in the House, to articulate that to them and get the message out. I spoke to the chairperson of the finance committee in the County and City Management Association, CCMA, last night to get the word out to local authorities. I wrote to all the chief executives in the local authority network this morning to outline where their local authority features in the report in terms of what is registered, what is approved and, critically, what is paid out and in their bank accounts. I will be following up on that with the Minister of State, Deputy Calleary, and the Minister of State, Deputy Higgins, over the next few days. We are all working well together to get this money in as quickly as possible.
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